CII Certificate in Insurance - Customer Service in Insurance (IF9) Practice Test

The maximum fine for a data breach is established under the General Data Protection Regulation (GDPR), which sets the limits for financial penalties on organizations that do not comply with data protection laws. The correct answer indicates that the maximum fine can reach up to €17.5 million or 4% of the organization's total annual global turnover from the preceding financial year, whichever is higher. This significant penalty reflects the importance of data protection and aims to encourage organizations to take their obligations seriously regarding user privacy and data security.

This answer highlights the enforcement framework intended to deter negligent behavior in handling personal data, emphasizing the impact of high penalties on corporate risk management practices.